I like to keep the charts simple, so let’s focus our attention on the highlighted box (between the $322 and $338 levels) and note today’s breakout above the upper resistance and $340 level.

Amazon is trying to build a base and develop a bullish trend reversal from its divergences that occurred near the $300 price level in May 2014.

What we’re seeing now is continuation of the strength and potential upside action that may trigger IF buyers can advance price above the next confluence resistance area near $350.

Right now, the break above the $338 level sets up a short-term bullish target play toward the $350 confluence of the 200 day SMA and a Fibonacci Level.

We can see the short-term Fibonacci Retracement Grid on the chart below:

Again, focus your attention on the $346.34 Fibonacci Retracement which (almost) intersects the 200 day SMA at $347.54.

Not only is this a short-term target (it could serve as a key resistance area), but it could also trigger the next breakout and bullish play (swing) for Amazon shares.

A clean trigger-break above $348 that carries above $350 could set-up another strong upward impulse at least to the 61.8% Fibonacci Level ($361) or even higher at the March 2014 swing high and gap area near $380 per share.

There’s one more piece to the potential bullish puzzle and it comes from the Weekly Chart:

Amazon trades above the 20 and 50 week EMAs ($330.76 and $327.63 respectively) and thus has entered an “Open Air Pocket” on the weekly chart which means that there are no obvious resistance levels on the weekly frame until price trades toward the prior $380 high.

Remember, this is not to say that Amazon WILL trade up through the pocket, but that price has an upward pathway to travel should it break above the current resistance cluster near $350.

Continue watching the current ceiling (near $350) and if buyers push price higher, it could be a catalyst (and trade set-up) for further upside action.